AI adoption can boost India’s GDP by $500-600 bn by 2035: NITI report

NEW DELHI: Accelerated adoption of Artificial Intelligence (AI) across industries can contribute $500-600 billion to India’s GDP by 2035 on the back of increased productivity and efficiency in the workforce, a NITI Aayog report said on Monday. The report titled ‘AI for Viksit Bharat: The Opportunity for Accelerated Economic Growth’ further said that over the next decade, the adoption of AI across sectors is expected to add $17-26 trillion to the global economy. “India’s combination of a large STEM workforce, expanding R&D ecosystem, and growing digital and technology capabilities position the country to participate in this transformation, with the potential to capture 10-15 per cent of global AI value,” it said. According to the Aayog, projections show that while AI will create many new roles, it will also displace many existing jobs, particularly in clerical, routine, and low-skill segments.

“Accelerated adoption of AI across industries can contribute $500 billion-$600 billion over and above India’s current GDP growth by 2035, driven by increased productivity and efficiency in the workforce,” the report said. It said the analysis shows that financial services and manufacturing can be most impacted and might have up to 20-25 per cent of their sectoral GDP attributed to AI by 2035. AI-led productivity and efficiency improvement could unlock $50-55 billion in financial services, over and above the current estimated growth for the sector by 2035. “AI could power automated compliance, fraud detection, and risk management through advanced anomaly detection techniques and privacy-preserving analytics such as secure multi-party computation and federated learning,” the report said.